In 2020, the government of Laos decided to break off the transmission division of Electricite Du Laos (hereinafter referred to as, “EDL”) and establish the Electricite Du Laos Transmission Company, Ltd. (hereinafter referred to as, “EDL-T”) for the purpose of handling power transmission both within and outside of Laos. In conjunction with the establishment of EDL-T, selling its high-voltage transmission division and creating company strategies and business plans in this new business environment have become pressing issues as it negotiates power sales contracts with neighboring countries, manages consigned transmission based upon transmission agreements and strengthens its distribution business.
Additionally, the company must also address such issues as the creation and implementation of financing/investment plans for optimally managing domestic supply and power interchange with neighboring countries within a new electric rate structure, the improvement of management efficiency, and the creation of structures to train human resources needed to accomplish these tasks.
Each of the companies in the joint enterprise shall leverage their strengths, such as consulting and experience in the electricity industry both within and outside of Japan, experience as financial advisors, and consulting experience pertaining to management and human resource development, etc., to help EDL strengthen its management structure and capabilities so that it can address on its own the various issues it faces.
The TEPCO Group will continue to cooperate as a JICA “Laos Power Policy Advisor” (2020~) and as part of the JICA “Project for Power Quality Improvement through Upgrading Grid Code and Strengthening its Enforcement System” (2021~) as we contribute to the development of Laos’s power sector.
Summary of the Project for Improvement of Power Utility Management of Electricite du Laos
1. Period/Applicable Territories
- September 2021 ~ March 2024 (Tentative)
2. Contracting Partner
- Strengthen the operation and management ability of EDL by constructing suitable corporate strategies and improving operational efficiency, strengthening human resource management and development capabilities, and providing support necessary to strengthen financial planning capabilities, thereby supporting the sustainable development of Laos’s power sector.
4. Project Details
- Provide support for creating improvement plans for quality management systems
- Provide support for creating corporate strategies and related plans
- Provide support for strengthening internal auditing systems, information disclosure mechanisms, and regulatory systems
- Provide support for the creation of department development plans
- Provide support for improving work efficiency
- Provide support for creating human resource management and development plans
- Train instructors
- Provide support for creating financial and power rate plans